Motta denies crisis with government and says he supports cuts that do not disproportionately affect the poor.
The lawmaker also signaled openness to supporting measures that increase taxation on the highest earners in Brazil.
(Reuters)- The Speaker of the Chamber of Deputies, Hugo Motta (Republicanos-PB), rejected on Friday in an interview with CNN Brasil the possibility of a break between Congress and the government due to the impasse involving the Tax on Financial Operations (IOF), while at the same time defending spending cuts that do not harm the poorest people.
In the interview, the Speaker of the House said that the decision by Justice Alexandre de Moraes of the Supreme Federal Court (STF), which suspended the government's decrees on the IOF tax, as well as the legislative decree that halted the effects of the Executive's measure, in addition to calling for a conciliation hearing on the subject, will allow the parties to dialogue and reach a solution.
"Disagreeing with the IOF on this point does not represent a break with the government, it does not represent a break with the economic team. It is simply a decision by Parliament, by the National Congress, not to agree with further tax increases. That is what we have made clear," he said.
Motta also signaled openness to supporting measures that increase taxation on the highest earners in Brazil, as well as a review of existing tax exemptions in the country.
The Speaker of the House also said that the proposal from President Luiz Inácio Lula da Silva's government to exempt people earning up to R$5 from income tax will be approved. According to Motta, along with other matters that have passed through Congress, this approval will be further proof that the Legislative branch is not against the poor.
